PITI the Fool - New Home Loans

New Home Loans - The New King In Town

Oh man, there ain't no town in the WORLD where I can;t walk into and take over like that - I just wrap my chains around some governor's neck, get in the ring with a few local toughs and show the world who is boss - THE T! Thats how it is, and thats how it will always be.

But thats also the way with new home loans coming into different markets where the old style of home loans simply fails to make home purchases work. So long fixed rates, so long FHA and so long old-school mortgage professionals. Hello robots. Hello math. Hello affordable, flexible options.

New home loans offering increased affordability

Thats right, I said there are new home loans coming out all thee time offering greater affordability over old mortgage options - but theres a catch. The T will be your friend and benefactor, but he'll also request a favor in the future and I PITI The Fool who don't be comin' through on the favors I seek! Same goes for today's new home loans, and that future favor is increased payments:

The vast majority of new home loans come with adjustable rates and low initial monthly payments - enough to get the person qualified and moved into the home they seek.
After the first few years ( 3, 5 or 7) the rates and the payments will suddenly change - your rates will adjust to match current levels, and your payments will start to make up for the delayed contribution to your loan principal, FOO!
For a lot of home owners this price shock will be too much to bear, for others they'll just have to up off the couch and start getting mean with their home finances.

These new home loans are tough, kid! They're tough and mean and they don't know the meaning of compassion or peace or any of that kind of funny stuff! Here they come, a rumblin' through your bank account and there ain't no way you gonna stop a train!

The upper hand

If you wanna succeed with a home purchase today, be careful around these new home loans. Know what you're getting into, know the future payment demands and make sure you can handle those demands when the time comes. Work on equity ASAP - I PITI the fool who takes out new construction home loans without looking into the equity possibilities! Its all about the chains, understand? Get the upper hand on these new loan punks, sucka!